Patna: Gold and silver prices in India climbed to unprecedented levels on Monday, driven by global geopolitical tensions, a sharply weaker rupee and sustained demand from central banks and industry.
According to the India Bullion and Jewellers Association (IBJA), the price of 24-carat gold rose by Rs4,717 to Rs1,59,027 per 10 grams on January 27, up from Rs1,54,310 in the previous session. Silver prices saw an even steeper jump, with one kilogram rising by Rs24,802 to Rs3,42,507.
The rally marks a dramatic start to the year for precious metals. In just 27 days of 2026, gold has gained Rs25,832 per 10 grams, while silver has surged by Rs1,12,087 per kg. At the end of 2025, gold was trading at Rs1,33,195 per 10 grams, while silver stood at Rs2,30,420 per kg.
Market participants attribute the sharp rise in gold prices to a combination of international and domestic factors. Heightened global tensions, including fears of new trade disputes triggered by US President Donald Trump’s comments on Greenland and potential tariffs on Europe, have pushed investors towards safe-haven assets. Such uncertainty typically leads to a shift away from equities and towards gold.
Currency movements have further amplified the surge. The Indian rupee fell to a record low of Rs91.10 against the US dollar, increasing the cost of imported gold. Jatin Trivedi, vice-president for commodity and currency research at LKP Securities, said the weak rupee had significantly raised the landed cost of gold in India, pushing domestic prices above the Rs1.5 lakh mark.
Another key driver has been sustained buying by central banks. Data from the World Gold Council shows that, following record purchases in 2025, central bank demand has remained strong at the start of 2026. With supply relatively limited, this continued accumulation has added upward pressure on prices.
Silver’s rally has been fuelled largely by industrial demand. The metal is widely used in solar power, electronics and electric vehicles, making it increasingly critical to global manufacturing. Fears of tariffs in the US have led companies to stockpile silver, tightening global supply. Manufacturers, concerned about potential disruptions, are also purchasing in advance, reinforcing the upward trend.
Analysts remain bullish. Dr Renisha Chainani, head of research at a leading brokerage, said that if US trade tensions and instability in the Middle East escalate further, gold could rise to Rs1,90,000 per 10 grams in 2026, while silver may approach Rs4 lakh per kg.
With prices at record highs, experts advise consumers to exercise caution. Buyers are urged to purchase only Bureau of Indian Standards (BIS)-hallmarked gold and to verify daily prices and weights from reliable sources such as the IBJA. For silver, simple checks – including magnet, ice, smell and cloth tests – can help distinguish genuine metal from imitations.
As global uncertainty persists, precious metals are likely to remain in focus, both as investment assets and as essential industrial commodities.
